Leases are very attractive….You get a new car every few years with a payment that is lower than what you would have to pay if you purchased the vehicle. So leasing is the way to go….right?
Maybe….
If you are like me and you like to drive a lot, then leasing my not be for you. Leases have mileage limitations and if you exceed the limit alotted, there can be hefty penalties when your lease ends. Penalties can range from 5 to 20 cents per mile over your limit. There is an option to pay an extra cost upfront for a higher mileage cap.
With buying a new vehicle you are essentially purchasing a depreciating asset. The value of your vehicle will decrease substantially in the first two years. This could possibly put you in an upside down situation with your auto loan.
As stated earlier, with leasing, your payments will be lower vs. buying, at the end of the lease period, but you have nothing to show for it. You will have the option to purchase the vehicle or lease another one.
Ownership is an advantage to purchasing. At the end of the loan period, the vehicle if yours for as long as you choose to keep it.
Here is a quick breakdown that may help you decide which purchasing option is best for you.
Leasing may be for you if:
You like driving a new car every 2-4 years.
You don’t drive a lot or have a second vehicle to keep mileage down
You take good care of your vehicles
Buying may be for you if:
You keep you vehicles for long periods of time
You log a lot of mileage on your vehicles
You like to customize your vehicles
I hope this helps you decide which option is best for you. If you are in need of guidance with buying or leasing a vehicle, feel free to contact us. We are happy to help!
